When talking about starting a business in Vietnam, Agriculture is said to be one of the most dynamic sectors due to the country’s vast lands and sustainable agricultural activities. The development is evidenced by the increasing business setups by foreign nationals.
The proliferating investment opportunities are undeniable as Vietnam has experienced the highest growth rate in 2018 for its agriculture sector at 3.76%. The export revenue in the country has hit US$40 billion in the same year with a trade surplus of US$8.72 billion.
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To boost the growth further, the Ministry of Agriculture and Rural Development (MARD), the Vietnam Cooperative Alliance (VCA) and the Vietnam Farmers’ Union (VFU) signed a coordination program. This program aims to have 15,000 effectively operating agricultural enterprises and organizations by 2020.
Furthermore, the MARD and VRU intends to assist farmers in Vietnam to build new rural areas for the development of agricultural economy. Currently, there are 14,700 training courses and vocational training available for the union members, enterprises and workers including those in rural areas.
With a compelling contribution of the agriculture sector to Vietnam’s GDP at 14.85%, agriculture continues to play a pivotal growth to catapult the country’s economy.
If you’d like to start an agricultural business in Vietnam, read on to find out more.
Popular Crops for Agricultural Business in Vietnam
Over the years, the middle-class income group in Vietnam has grown significantly with the augmenting purchasing power as well. Therefore, besides being the largest rice exporter in the world, Vietnam’s domestic market has also turned into something that foreign investors are interested in.
The most flourishing subsectors of Vietnam’s agricultural industry for starting a business in Vietnam, especially in exports, include the following:
- Horticultural products
- Poultry products and its processing subsectors
- Dairy products
- Coffee, tea, cocoa, spices
How to Set Up an Agriculture Business in Vietnam
In accordance with Company Law in Vietnam, in agriculture, starting a business in Vietnam requires investors to choose and register a legal entity that suits the business structure.
There are four business legal entities available for those who want to start an agricultural business in Vietnam:
- Enterprise in the form of joint venture
- 100% foreign-owned partnership
- 100% foreign-owned sole proprietorship
- A co-operative
Among the four legal entities, the most common type for starting an agricultural business is the co-operative.
The co-operatives must contain a minimum of 7 members and these members will gain benefits from the below items:
- Government-issued preferential credits
- Land leasing priority
- Special agriculture-related investment policies
- Natural disaster’s aftermath monetary support
Documents Required for Starting a Business in Vietnam
- Association article or company charter
- Incorporation certificate
- Latest 12-month financial statements
- Valid passports or identity cards
Restrictions on Currency to Start a Business in Vietnam
Money that is involved in the business transactions must all be deposited into a local bank by converting it into Vietnamese dong; or into a foreign currency bank account in Vietnam. Movement of money into and out of Vietnam can only be performed when the activity fulfills certain criteria.
How Cekindo can Assist
Cekindo is your trusted business consulting firm for starting a business in Vietnam. Established and developed by entrepreneurs, legal experts and consultants of diverse backgrounds, Cekindo has the resources and tools required to unfold your idea from just a dream to a full-grown business.
Whether you are registering a business in Vietnam, looking for funding, choosing a legal entity, writing a business plan, Cekindo will provide you with step-by-step guidance; so that you will always know your next step towards starting your business in Vietnam.
Find out exactly what your enterprise needs with Cekindo for you to achieve your business growth goals. Start by filling in the form below.